Given the way U.S. beer sales are heading toward macro-breweries, Anheuser Busch InBev NV (ADR) (NYSE: BUD) is becoming an emerging markets brewer.

Sixty-five percent of estimated fiscal 2017 sales for the world’s largest brewer are coming from potentially high-growth emerging beer markets. This by definition makes it an emerging markets brewer.

“We believe that its beer operations are structurally advantaged owing to their dominant positions and high exposure to growing emerging markets. We believe this justifies a valuation premium,” said Berenberg analyst Javier Gonzalez Lastra.

Berenberg set a Buy rating on ABInbev with a 116 euro price target.

According to Berenberg, all the macro-breweries in the U.S. are facing difficulties with demographic trends and expects the situation to become worse.